Caption Contest 1The Russians came up with an extraordinary statement recently, central to why Russia and China are buying gold, the importance of which was missed by the media.
President Putin said that “Russia and China need to secure their gold and foreign reserves.”   He may have been overstepping the mark in making comments about China’s monetary policy, but he was unlikely to have done so without good reason.
Furthermore it is impossible to secure foreign currency reserves, because they are at all times under the control of the issuing central banks.
So what Putin was actually implying was that China and Russia need to secure their gold.
The signs are as clear as daylight:
It amounts to an Asian gold strategy that excludes the west, and by suppressing the gold price through sales and leasing of monetary gold western central banks have unwittingly enabled China’s carefully thought-out plans.
How and when will western central banks break the news to us all, that the bulk of the gold reserves entrusted to them are now in Asian hands, and they have been secretly complicit since the 1970s in setting up a whole continent with what amounts to the largest wealth transfer in history?

Eugene Goostman, a computer program made by a team based in Russia, succeeded in a test conducted at the Royal Society in London.  It convinced 33 per cent of the judges that it was human, said academics at the University of Reading, which organized the test.
It is thought to be the first computer to pass the iconic test. Though other programs have claimed successes, those included set topics or questions in advance.
The computer program claims to be a 13-year-old boy from Odessa in Ukraine.

“In the field of Artificial Intelligence there is no more iconic and controversial milestone than the Turing Test, when a computer convinces a sufficient number of interrogators into believing that it is not a machine but rather is a human,” he said. “Having a computer that can trick a human into thinking that someone, or even something, is a person we trust is a wake-up call to cybercrime.

goldRegarding Goldman Sachs’ hypothecation of Ecuador’s 13 tonnes of gold:  Ecuador has 26 tonnes in total.
You don’t manipulate the market with 26 tonnes.  China withdraws over 30 tonnes per week from the Shanghai Gold Exchange.  Then there’s India.  Then there’s Russia.  Then there’s Viet Nam (Viet Nam is the 5th largest gold importer in the world – that’s a fact).   Then there’s all the other gold-buying countries.  At least 50 tonnes of gold gets bought every week.  This is gold that has to be delivered.
Coincidentally, or not coincidentally, Russia bought 25.5 tonnes in April.
My bet is that Goldman may have needed that gold from Ecuador to deliver to Russia.  

The World Cup trophy itself is legendary.  
The current World Cup, commissioned in 1974, stands 36.8 centimeters high, weighs 6.177 kilogrammes or 218 troy ounces and is made of  solid 18 karat gold.  This means that in gold terms, The World Cup is worth a measly €149,500 – £121,500 or $203,500, calculated at June 6, 2014, gold prices.
This wouldn’t even cover the payroll for some football stars in a week. Ronaldo, the Real Madrid European Cup Winner is currently earning more than €370,000 per week – £300,000 or $502,500 per week.
Todays winners of The World Cup only receive a replica of the trophy, which is just gold plated rather than the actual solid 18 karat gold trophy.

Jim Rickards ChinaJames Rickards has been quite vocal in his view that the price of gold is headed much higher.  Yet, in the same breath he aggressively promotes the  idea of using the IMF SDR to replace the dollar as the world’s reserve currency.
There’s two reasons for this.  First, if you study Rickard’s background going all the way back to his role in the Iran hostage crisis, you’ll see that he’s been lifetime “front man” for the most powerful interest groups that control this country behind the scenes.  First and foremost he’s a front-man for the Pentagon.
I’ve been told separately, independently from two different sources that the elite insiders in the Department of Defense know that the demise of the dollar is inevitable…. and that there’s nothing that can be done to prevent it.

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Source: Nanex

In this EXCLUSIVE, MUST LISTEN interview with The Doc, Eric Sprott dissects the fundamentals in the gold and silver markets, coverage of manipulation finally reaching the mainstream, and reveals his updated outlook on gold & silver.
Eric discusses why the precious metals options markets always expire at MAX PAIN for the customers, and why he urges all PM investors to STAY OUT of the futures options markets, and simply accumulate physical metal.
Sprott explains how PM manipulation shifted from being conducted solely by the Central banks to the dealers active daily participation that we see now, and discusses how much he personally lost when a Barclays trader manipulated gold down into the London fix.  

Regarding his price outlook for the metals, with silver trading under $20 and gold trading near $1250, is Eric still looking for new highs in 2014?
His answer might shock you.

The Doc’s full Exclusive interview with Eric Sprott of Sprott Asset Management is below:

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Ron PaulCongressman & former Presidential Candidate Ron Paul joins the show this week, discussing:

  • Putin’s response to US sanctions with economic retaliation- implications for US economy & the US Dollar- It is very significant, dumping of US dollars has begun…The dollar can’t be maintained.  One reason the dollar has been sustained as well as it has been is who wants to buy yuan or euros?  But ultimately they will buy the real money, and that’s gold!
  • Paul on the Coming collapse of the dollar & all fiat currencies:  Officials in charge of monetary policy are very aware of what’s coming– they believe as long as it is orderly they will be ok…The problem is when people lose confidence in a currency, they lose confidence completely.  There’s nothing orderly about it!  There’s always a panic, and that’s hard to manage.   There will be a day when people will panic in the financial markets, not only in the dollar, but in the world-wide system!
  • The former member of the House Financial Services Committee explains why his nemesis at the Federal Reserve works so hard to discredit gold, and what he wishes he would have asked Ben Bernanke during his grilling of the Fed Chairman at his House Hearings on the Fed’s Monetary Policy

The MUST LISTEN SD Metals & Markets with Former Presidential Candidate, Sound Money & Freedom Champion Ron Paul is below:

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willie In the first of two EXPLOSIVE interviews with SD,  Hat Trick Letter editor Jim Willie gave some of his BOLDEST & MOST SHOCKING PREDICTIONS EVER for SD listeners:

  • Willie dissects the Holy Grail Gazprom gas deal, which he states is an OPEN DOOR for the dumping of Treasury bonds in exchange for energy
  • Russia Liquidating T-bonds through Euroclear in Belgium to acquire gold
  • Big Surprise Coming for London Boys: Frankfurt to Become Financial Hub For All of Europe & Asia– Willie reveals insider details
  • Large sovereigns (Russia, China, India, Saudi Arabia) now working together to source massive gold reserves for gold-backed USD replacement
  • China & Russia Have Accumulated Over 40,000 Tons of Gold Reserves for USD Replacement!!

Jim Willie’s Full MUST LISTEN interview with The Doc is below:

When Barack Obama was running for president in 2008, he stated that under his plan “electricity rates would necessarily skyrocket”.  Well, now it looks like he is finally getting around to keeping his promise.  New EPA rules that are designed to cripple the coal industry could send electricity rates soaring by up to 40 percent in many rural areas.  And even though we have enough coal in the ground to provide hundreds of years of energy at current levels of consumption, Obama’s plan is going to force large numbers of coal plants to completely shut down because they are simply going to become too expensive to operate. 

British taxpayers risk losing their entire £45 billion stake in Royal Bank of Scotland (RBS), the parent company of Ulster Bank, which is in grave danger of failing within 10 years, according to an explosive new book.
According to The Independent on Sunday, a new study of the bank, which brought the UK to the brink of financial ruin, reveals RBS still has a £100 billion “black hole” in its finances due to “five broad areas of alleged criminality and wrongdoing”.

One of the things that was great about America in the post-World War II era was that we developed a large, thriving middle class.  Until recent times, it always seemed like there were plenty of good jobs for people that were willing to be responsible and work hard.  That was one of the big reasons why people wanted to come here from all over the world.  They wanted to have a chance to live “the American Dream” too.
But now the American Dream is becoming a mirage for most people.  No matter how hard they try, they just can’t seem to achieve it.
And here are some hard numbers to back that assertion up.  The following are 15 more signs that the middle class is dying…

Russia's Universal electronic card based on PRO100 payment system, RIA Novosti/Maksim BogovidRussia will start settling more contracts in Asian currencies, especially the yuan, in order to lessen its dependence on the dollar market, and because of Western-led sanctions that could freeze funds at any moment.

Over the last few weeks there has been a significant interest in the market from large Russian corporations to start using various products in renminbi and other Asian currencies, and to set up accounts in Asian locations, Pavel Teplukhin, head of Deutsche Bank in Russia, told the Financial Times, which was published in an article on Sunday.

dollarThe world has never been in a position like this before, where all global currencies are fiat and dependent upon central banker power.  The push for a New World Order is inexorable, and make no mistake, the monied elites are fully in control, or almost so.
We maintain this is why so many in the Precious Metals community have miscalculated the timing for when gold and silver would take off to the upside, collapsing the Fed’s fiat “dollar,” or as a result thereof.
On the surface, it appears that the East is almost in control of most of the world’s supply of gold, while the West remains in control of gold’s pricing mechanism, doing whatever it takes to preserve the fiat “dollar” as the world’s reserve currency for international trade contracts.  In addition to gaining control of physical gold, even setting up the Shanghai Gold Exchange, [SGE], as a more viable alternative to the literally “fixed’ pricing of paper gold by COMEX and LBMA, the East is providing an alternative trade outside of the “dollar,” and this has created a situation akin to the West as a dangerous cornered rat.

Massive shortsThe precious metals plunged last week, knifing through key support zones to unleash an explosion of bearish sentiment.  This troubling heavy selling wasn’t news-driven, it emerged out of the blue.  Who was dumping gold and why?  Later data confirmed it was American futures speculators short selling gold and silver at record levels. 
Extreme shorting is very bullish, as these bets soon have to be covered.

SGE withdrawals vs WGC Chinese gold demnadMost people on this planet who have an interest in gold simply copy the demand numbers from the WGC. The consequences of the world being misinformed on this subject is hard to comprehend.
The WGC mentions SGE deliveries and withdrawals in two separate reports.   If they watch SGE withdrawals why not publish these numbers and inform the world on the significance of these numbers?
This is essential information regarding the Chinese gold market.
Why is the WGC reluctant to cover these essentials?  

gunWell, it’s a bit of an exaggeration, but for the first three days of this week daily turnover in the gold future fell to about 80,000 contracts, compared with a more normal level of 120,000.
At the same time volatility fell to as close to zero as you can get.
Silver is now set up for a major bear squeeze, but for the fact that both silver and gold have a recent history of weakness into quarter ends. Gold bottomed a year ago on 26th June at under $1200, and again at the same level on 30 December. It also sold off into the end of the March quarter.

No doubt this predictable price behavior has encouraged silver’s bears into a technically dangerous position.

HEROES SDWC D-Day- Launches NOW at SDBullion!  
LIMITED MINTAGE:

10,000 Brilliant Uncirculated 1 oz Coins– in honor of the 10,000 Allied casualties suffered on D-Day
1,557 Proof 1 oz Coins– in honor of the 1,557 MIA Americans whose names are inscribed on the memorial
wall in the Normandy American Cemetery Garden of the Missing.

Each of the individually numbered COA’s will specifically honor one of the 1,557 American Heroes MIA on D-Day, including their Rank, Name, Unit, Home State, & Decorations.

HEROES_With_Flag_2
HEROES SDWC D-Day: Launches NOW At SDBullion!  
Don’t Let Them Die in Vain!

Doc discusses the HEROES SDWC project with T. Ferguson of TFMetalsReport on the 70th Anniversary of D-Day:
Download Podcast (Right Click + ‘Save As’)

China credit crisisThe terrible irony in the official strategy of “buying time so the financial system can heal itself” is the policies prohibit healing and guarantee the next financial crisis will be greater in magnitude than the last one.
There is only one way for any financial system to heal itself: enable the open market to discover the price of capital, credit, assets, collateral and risk.
What “buying time” has done is destroy the market’s ability to price capital, credit, assets, collateral and risk, stripping the system of the essential information participants need to make rational, informed decisions.
By crushing the market’s ability to generate accurate pricing information, central state and banking authorities have insured the system cannot possibly heal itself while maintaining perverse incentives that guarantee the next financial crisis will dwarf the previous one.

dry powder silverSo, here’s the deal. DO NOT get itchy to buy or get long…YET.  Let this play out.
Raise a mountain of dry powder and wait. Lay in the weeds with full knowledge of what is coming and then pounce later this month. Don’t be fooled by the first time GOFO slips negative. Recall that it did so on 12/9/13 only to move back positive on 12/12/13 before moving decisively negative on 12/19/13 ahead of the 12/31/13 Double Bottom.
Of course, in the long term, it matters little whether you add to your stack at $1240 or $1200.
   I get that. And anyone simply stacking should be sure to add on a consistent basis.  For traders of metal and/or miners, however, the main opportunity awaits.